China-Germany economic cooperation yields tangible results

With his high-profile visit to China, German Chancellor Friedrich Merz has signaled the country's intent to pursue a more pragmatic and balanced economic relationship. The trip comes at a delicate moment for Europe's largest economy. Germany experienced contraction in both 2023 and 2024, with only a marginal growth of 0.2 percent achieved in 2025. Traditional strengths such as automobiles and machinery face intensifying global competition, while exports have provided diminishing support to overall growth.

Against this backdrop, the scale and dynamism of the Chinese market carry renewed significance. "Exporting to China" is no longer optional for many German firms — it is strategic. Merz arrived in Beijing with a senior business delegation of nearly 30 executives spanning automotive, chemicals, biopharmaceuticals, advanced manufacturing, and circular economy sectors. He described the 7,500-kilometer journey from Berlin to Beijing as one undertaken to seize "enormous opportunities" for deeper ties.

At the same time, Berlin seeks to address structural imbalances. German data shows that in 2025, its imports from China were more than double its exports to China, leaving Germany with an €89.3 billion (around $105.5 billion) trade deficit. The widening gap has fueled debate at home and added pressure on policymakers to expand German exports.

According to China's Foreign Ministry spokesperson Mao Ning, the February 25–26 visit produced substantive outcomes. The two sides witnessed the signing of cooperation documents in areas such as green transition, customs facilitation, sports, and media, and convened a meeting of the Sino-German Economic Advisory Committee with more than 60 leading companies. China's Ministry of Commerce spokesperson He Yongqian said the talks yielded "positive and pragmatic results," with over a dozen commercial agreements reached in automobiles, machinery, energy, logistics, and finance.

German business leaders voiced confidence in China's long-term prospects and pledged to expand investment, seeking to participate more deeply in China's modernization drive. After concluding talks in Beijing, Merz traveled to Hangzhou to further economic engagement, calling the visit "substantive and meaningful."

History suggests that pragmatism remains the anchor of China-Germany ties, wrote Lyu Yunmou, a researcher at the China Institutes of Contemporary International Relations. China was Germany's largest trading partner for eight consecutive years through 2023, briefly ceded the position in 2024, and regained it in 2025 with bilateral trade reaching €251.8 billion. Geography may separate Berlin and Beijing, but commercial interdependence continues to bind them, Lyu added.